- Stablecoins are a 277 billion dollars blockchain market.
- The issuers rush for a larger piece on the market.
- Will these blockchains compete with Ethereum for the domination of payments?
Stablecoin issuers are building their own blockchains to take a larger part of the massive transaction costs generated by the $ 27777 billion market.
“The launch of a dedicated chain gives issuers more control over the regulation and compliance, but it also opens the door to new income for costs and network activities,” DL News Ben Reynolds, director of Stablecoins de Bitgo, a crypto infrastructure company told DL.
It would be great for these individual transmitters, but it also poses a massive challenge for Ethereum and Tron, which captured more than 80% of the StableCoin market.
If the transmitters move away from these blockchains, it could unravel a hole in their income of costs, especially since the stabbed should represent 12% of world payments by 2030.
And for Ethereum himself, the trend could alleviate the expectations of his greatest supporters like the young Cho, CEO of Stablecoinx, a company of Ethhena Treasury, that he will become the financial substrate of the future.
Attachment, circle and band
Tether is already working with startups like plasma to create blockchains dedicated for its $ 167 billion USDT Stablecoin. In August, the giant of Circle and Fintech Stripe announced its intention to create their own Stablecoin blockchains.
Tether and Circle are the two largest stablecoin issuers, and they represent almost a quarter of the daily transaction costs throughout the DEFI sector, according to Defilma data.
For them, it is as much a question of controlling the infrastructure as of profit, according to Aishwary Gupta, world payment head, exchanges and active assets at Polygon Labs.
“It has always said in the world of payments,” the one who controls the rails, controls everything “,” Gupta told DL News.
Bad for Ethereum?
Cho said these new blockchains optimized for specific use cases for stablescoin as payments and yield could “fragment activity and reduce Ethereum centrality” on the market.
Ethena also has her specially designed stablecoin blockchain called Converge, but as a blockchain in layer 2 Ethereum, Cho said she was interoperable with Ethereum.
“The intention is not to undermine Ethereum, but to complete it by extending its scope and functionality in the Stablecoin ecosystem,” said Cho DL News.
Ethereum is the largest deffi chain, and with the stablecoins an important part of the DEFI market, a large volume of stablecoin transactions occurs on Ethereum. It even represents more than half of the Stablescoin market, according to Defilma data. Tron, the next major blockchain for the colonies of Stablecoin, is barely half that of Ethereum.
However, these apparently separate stablecoin blockchains could converge to have a kind of interoperability between them, according to Thomas Cowan, responsible for tokénisation at Galaxy Digital.
“The rise of the blockchains operated belonging to transmitters could create a competitive dynamic with the opening of entirely public channels like Ethereum,” said Cowan DL News.
Osato Avan-Nomayo is our DEFI correspondent based in Nigeria. It covers Defi and Tech. Do you have a tip? Please contact him at Osato@dlnews.com.
